2010 Unemployment Compensation Tax Rates Fact Sheet Current economic conditions have inereesed the level of unemployment in Florida, and consequently, the amount of unemployment benefits that the state is paying to unemployed citizens, Florida's seasonally adjusted unemployment rate for September was 11%, The last time it was this high was October 1975, Florida pays benefits from the Unemployment Compensation Trust Fund whieh is fanded by the unemployinent compensation tax paid by Florida employers, At the end of the 4 quarter of 2008, the UC Trust Fund balance was over $1.3 billion, As of June 30, 2009, the balance was just under $450 million, ‘On August 24, 2009, the belance in the trust fund fell (0 zero and Florida began borrowing from the federal government to pay unemployment compensation benefits, Currently, Florida is borrowing approximately $300 million per month, ‘When the trust fund falls below a certain threshotd, Florida law annually adjusts the unemployment tax rates on businesses to rebuild the balance in the trust fund. ‘This “automatic trigger” is contained in Section 443.131(3)(¢)L.c, Florida Statutes, and the tigger occurs if the balance in the fund falls below 4% of the (otal taxable payroll in the most recent state fiscal year. ‘The trust fund balance as of June 30, 2009 was $449,475,280,80 which is 992% of the fiscal year 2008-2009 taxable payroll of $49,983,873,885,15. Since the balance was lower than 4% of the taxable payroll on June 30, 2009, the automatic trigger will significantly incense the 2010 unemployment tax tates. Rates are generally caleulated using a formula that considers each employer's employment experience, ie. amount of benefits paid to ex-employees and number of employees that have been laid off by the business during the last three years. Statutory changes enaeted in 2009 increased an employee's taxable wages from $7,000 to $8,500 for the 2010 rates, Current rates (based on annual salary up to $7,000 per employee): Minimum rate: 0.0012 or $8.40 per employee Maximum rate: 0.0540 or $378 per employee New rates effective January 1, 2010 (based on annual salary up to $8,500 per employee): Minimum rate; 0.0118 or $100.30 per employee Maximum rate: 0.0540 or $459 per employee. Notices of business's individual rates will be distributed in November or December 2009 and ave effective for wages paid on or after January 1, 2010.